This dissertation investigates the evolution of Corporate Social Responsibility (CSR) practices in China, with a focus on strategic influences, governance structures, and reporting mechanisms. As China’s economy has grown rapidly over the past two decades, enterprises have been increasingly expected to address social and environmental responsibilities. The expansion of China’s economy has led to significant societal benefits but also created challenges, including environmental degradation, industrial accidents, and declining product quality. These issues underscore the need for Chinese businesses to adopt CSR practices that foster transparency, build trust, and support sustainable growth.
This study systematically examines how CSR has developed within the unique cultural, regulatory, and political context of China, where state policies and socio-cultural values play a significant role in shaping corporate behavior. The dissertation explores CSR through an integrated framework that combines compliance-oriented, stakeholder-centered, strategic, and culturally-embedded approaches, aiming to reveal how Chinese companies align their CSR initiatives with both national priorities and global standards.
The research delves into the influence of political connections on CSR practices, identifying two types of political ties-material and symbolic. It reveals that material connections support a governance-driven CSR approach that aligns closely with regulatory standards and public accountability. In contrast, symbolic connections provide reputational benefits, allowing firms to selectively engage in CSR activities based on strategic image considerations. This distinction advances the understanding of CSR in China, where political affiliations are a unique aspect of the business environment.
Corporate governance is also a central theme of the research, particularly how board characteristics such as independence, diversity, size, CEO duality, and the presence of specialized committees impact CSR decoupling. This study breaks new ground by dissecting these governance elements individually, revealing that while certain factors like board independence and diversity enhance CSR alignment through stronger oversight, others, such as CEO duality, may pose risks by consolidating power and potentially leading to inconsistencies between stated CSR goals and actual practices. This nuanced approach offers a deeper insight into how governance structures can either support or hinder effective CSR implementation in Chinese enterprises.
Another key aspect explored is the link between CSR quality and the cost of debt capital. By examining the role of executive attributes, especially CEO financial expertise, the dissertation highlights that high-quality CSR reporting can build creditor trust, reducing perceived risks and ultimately lowering the cost of debt. However, it also finds that CEOs with advanced financial expertise may paradoxically raise debt costs due to a preference for more aggressive financial strategies. This finding contributes to the broader understanding of how leadership characteristics influence CSR outcomes and financing conditions, especially in environments where CSR practices are closely scrutinized by stakeholders.
The study further investigates the interaction between CSR commitment, internal control effectiveness, and board gender diversity in the Chinese context. Contrary to some expectations, it finds that female board representation does not uniformly enhance internal controls in high-CSR firms in China, suggesting that the impact of gender diversity on CSR and corporate governance may be shaped by local cultural and institutional factors. This analysis enriches the discourse on CSR by providing insights into how cultural and institutional specifics influence transparency and accountability practices within Chinese companies.
Overall, the dissertation aims to contribute to the development of a robust CSR framework that balances regulatory compliance, stakeholder expectations, and sustainable growth. This work contributes to the academic discourse on CSR practices by providing an empirically grounded analysis of how governance structures, political affiliations, and cultural factors shape CSR engagement in China. By distinguishing between different types of political and governance influences, and by examining their specific effects on CSR alignment and accountability, the study offers a refined perspective that broadens the understanding of CSR dynamics in emerging markets. This approach allows for a more nuanced consideration of CSR’s role in balancing regulatory demands and stakeholder interests, especially within socio-political contexts distinct from Western frameworks.
Through these contributions, the study aspires to help shape a future CSR framework in China that supports sustainable corporate growth, ethical governance, and strengthened accountability.
